SEMI-ANNUAL
REPORT
April
30,
2023
BNY
Mellon
US
Large
Cap
Core
Equity
ETF
BNY
Mellon
US
Mid
Cap
Core
Equity
ETF
BNY
Mellon
US
Small
Cap
Core
Equity
ETF
BNY
Mellon
International
Equity
ETF
BNY
Mellon
Emerging
Markets
Equity
ETF
BNY
Mellon
Core
Bond
ETF
BNY
Mellon
Short
Duration
Corporate
Bond
ETF
BNY
Mellon
High
Yield
Beta
ETF
Discussion
of
Funds’
Performance
3
Understanding
Your
Fund’s
Expenses
19
Statements
of
Investments
20
Statements
of
Assets
and
Liabilities
124
Statements
of
Operations
127
Statements
of
Changes
in
Net
Assets
130
Financial
Highlights
134
Notes
to
Financial
Statements
142
Information
About
the
Renewal
of
Each
Fund’s
Management
and
Sub-Investment
Advisory
Agreements
154
FOR
MORE
INFORMATION
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The
views
expressed
herein
are
current
to
the
date
of
this
report.
These
views
and
the
composition
of
the
funds’
portfolios
are
subject
to
change
at
any
time
based
on
market
and
other
conditions.
Not
FDIC-Insured
•
Not
Bank-Guaranteed
•
May
Lose
Value
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
from
November
1,
2022,
through
April
30,
2023,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation.
Market
and
Fund
Performance
Overview
For
the
six-month
period
ended
April
30,
2023,
the
BNY
Mellon
US
Large
Cap
Core
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
9.35%.
1
In
comparison,
the
Morningstar
®
US
Large
Cap
Index
SM
(the
“Index”),
the
fund’s
benchmark,
returned
9.37%
for
the
same
period.
2,3
Large-cap
equities
gained
ground
during
the
reporting
period
as
inflationary
pressures
eased,
the
U.S.
Federal
Reserve
(the
“Fed”)
reduced
the
pace
of
interest-rate
hikes,
and
economic
growth
remained
positive.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
match
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
U.S.
large-
capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-
trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
top
70%
of
the
remaining
securities
comprising
the
investable
universe.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Advance
Despite
Macroeconomic
Concerns
Market
sentiment
proved
volatile
but
positive
during
the
reporting
period,
with
hopes
for
continued
economic
growth
outweighing
concerns
regarding
persistently
high
levels
of
inflation
and
the
impact
of
Fed
rate
hikes
designed
to
curb
inflation.
In
November
2022,
as
the
period
began,
inflation
averaged
7.1%
on
an
annualized
basis,
down
from
the
9.1%
peak
set
in
June
2022
but
well
above
the
Fed
target
of
2%.
On
November
2nd,
the
Fed
raised
the
benchmark
federal
funds
rate
from
a
range
of
3.00%–3.25%
to
a
range
of
3.75%–4.00%,
up
from
near
zero
eight
months
earlier.
During
the
reporting
period,
the
Fed
raised
rates
three
more
times,
totaling
an
additional
1.00%,
while
inflation
steadily
eased
to
5.0%
as
of
the
most
currently
available
figures.
Although
U.S.
economic
growth
and
corporate
profits
showed
signs
of
moderating
during
this
time,
indications
generally
remained
positive,
supported
by
robust
consumer
spending,
rising
wages
and
low
levels
of
unemployment.
These
encouraging
economic
trends
lessened
concerns
that
rising
rates
might
tip
the
economy
into
a
sharp
recession.
Accordingly,
while
equity
markets
frequently
dipped
or
spiked
in
response
to
the
economic
news
of
the
day,
stocks
trended
higher
on
balance,
led
by
growth-oriented
issues
in
the
communication
services
and
information
technology
sectors.
Other
factors
aside
from
inflation
and
interest
rates
also
played
a
role
in
market
behavior
during
the
period.
The
reopening
of
the
Chinese
economy
in
the
fourth
quarter
of
2022,
after
lengthy
COVID-19-related
shutdowns,
generally
bolstered
confidence,
particularly
as
renewed
Chinese
activity
did
not
appear
to
cause
inflation
to
accelerate.
On
the
negative
side,
a
small
number
of
high-profile,
regional
bank
failures
in
the
United
States
in
the
first
quarter
of
2023
raised
fears
of
possible
wider
banking
industry
contagion
and
future
credit
constraints.
However,
stocks
remained
in
positive
territory
despite
a
steep
decline
in
early
March.
Swift
action
from
federal
authorities
and
major
banks
eased
investors’
concerns,
enabling
markets
to
gain
additional
ground
in
the
closing
six
weeks
of
the
period.
Growth-Oriented
Technology
Shares
Lead
Markets
Higher
Communication
services
stocks
produced
the
strongest
returns
in
the
Index,
led
by
fast-growing
technology-centric
companies
such
as
Meta
Platforms,
as
investors’
risk
appetites
increased.
The
information
technology
sector,
with
an
abundance
of
growth-oriented
technology
companies,
outperformed
as
well,
followed
by
materials.
Conversely,
the
energy
sector
generated
the
weakest
performance
in
the
Index
as
natural
gas
prices
collapsed
in
the
face
of
an
unexpectedly
mild
winter
and
the
success
of
European
countries
in
coping
with
the
absence
of
Russian
oil
and
gas.
The
health
care
sector
experienced
a
mild
decline,
while
consumer
discretionary
produced
positive
returns
but
lagged
the
Index
average.
The
fund’s
use
of
derivatives
during
the
period
was
limited
to
futures
contracts
employed
solely
to
offset
the
impact
of
cash
positions,
which
the
fund
holds
pursuant
to
its
operations,
but
the
Index
does
not.
Such
holdings
helped
the
fund
more
closely
match
the
performance
of
the
Index.
Replicating
the
Performance
of
the
Index
Whether
the
Fed
can
curb
inflation
while
avoiding
a
significant
economic
slowdown
remains
an
open
question
that
is
likely
to
continue
to
drive
market
behavior
in
the
coming
months.
However,
in
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
As
of
the
end
of
the
period,
the
largest
sectors
in
the
Index
were
information
technology,
health
care
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
and
financials,
while
the
smallest
were
real
estate,
utilities
and
materials.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
May
15,
2023
1
Total
return
includes
reinvestment
of
dividends
and
any
capital
gains
paid.
A
fund’s
net
asset
value
(NAV)
is
the
sum
of
all
its
assets
less
any
liabilities,
divided
by
the
number
of
shares
outstanding.
ETFs
are
bought
and
sold
at
market
prices,
not
NAV,
therefore
an
investor’s
return
at
market
price
may
differ
from
NAV.
Past
performance
is
no
guarantee
of
future
results.
Share
price,
yield
and
investment
return
fluctuate
such
that
upon
redemption,
fund
shares
may
be
worth
more
or
less
than
their
original
cost.
2
Source:
Morningstar,
Inc.
—
The
Morningstar
®
US
Large
Cap
Index
SM
is
a
float-
adjusted,
market
capitalization-weighted
index
that
is
designed
to
measure
the
performance
of
U.S.
large-capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
top
70%
of
the
remaining
securities
comprising
the
investable
universe.
Investors
cannot
invest
directly
in
any
index.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar
®
is
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
BNY
Mellon
ETF
Investment
Adviser,
LLC.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
ETF
shares
are
listed
on
an
exchange,
and
shares
are
generally
purchased
and
sold
in
the
secondary
market
at
market
price.
At
times,
the
market
price
may
be
at
a
premium
or
discount
to
the
ETF’s
per
share
NAV.
In
addition,
ETFs
are
subject
to
the
risk
that
an
active
trading
market
for
an
ETF’s
shares
may
not
develop
or
be
maintained.
Buying
or
selling
ETF
shares
on
an
exchange
may
require
payment
of
brokerage
commissions.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
The
fund
may,
but
is
not
required,
to
use
derivative
instruments.
A
small
investment
in
derivatives
could
have
a
potentially
large
impact
on
the
fund’s
performance.
The
use
of
derivatives
involves
risks
different
from,
or
possibly
greater
than,
the
risks
associated
with
investing
directly
in
the
underlying
assets.
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
from
November
1,
2022,
through
April
30,
2023,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation.
Market
and
Fund
Performance
Overview
For
the
six-month
period
ended
April
30,
2023,
the
BNY
Mellon
US
Mid
Cap
Core
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
3.85%.
1
In
comparison,
the
Morningstar
®
US
Mid
Cap
Index
SM
(the
“Index”),
the
fund’s
benchmark,
returned
3.86%
for
the
same
period.
2,3
Equities
gained
ground
during
the
reporting
period
as
inflationary
pressures
eased,
the
U.S.
Federal
Reserve
(the
“Fed”)
reduced
the
pace
of
interest-rate
hikes,
and
economic
growth
remained
positive.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
match
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
U.S.
medium-
capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-
trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
falls
approximately
between
the
bottom
10%-30%
of
the
remaining
securities
comprising
the
investable
universe.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Advance
Despite
Macroeconomic
Concerns
Market
sentiment
proved
volatile
but
positive
during
the
reporting
period,
with
hopes
for
continued
economic
growth
outweighing
concerns
regarding
persistently
high
levels
of
inflation
and
the
impact
of
Fed
rate
hikes
designed
to
curb
inflation.
In
November
2022,
as
the
period
began,
inflation
averaged
7.1%
on
an
annualized
basis,
down
from
the
9.1%
peak
set
in
June
2022
but
well
above
the
Fed
target
of
2%.
On
November
2,
2022,
the
Fed
raised
the
benchmark
federal
funds
rate
from
a
range
of
3.00%–3.25%
to
a
range
of
3.75–4.00%,
up
from
near
zero
eight
months
earlier.
During
the
reporting
period,
the
Fed
raised
rates
three
more
times,
totaling
an
additional
1.00%,
while
inflation
steadily
eased
to
5.0%
as
of
the
most
currently
available
figures.
Although
U.S.
economic
growth
and
corporate
profits
showed
signs
of
moderating
during
this
time,
indications
generally
remained
positive,
supported
by
robust
consumer
spending,
rising
wages
and
low
levels
of
unemployment.
These
encouraging
economic
trends
lessened
concerns
that
rising
rates
might
tip
the
economy
into
a
sharp
recession.
Accordingly,
while
equity
markets
frequently
dipped
or
spiked
in
response
to
the
economic
news
of
the
day,
stocks
trended
higher
on
balance,
led
by
growth-oriented
issues
in
the
communication
services
and
information
technology
sectors.
Other
factors
aside
from
inflation
and
interest
rates
also
played
a
role
in
market
behavior
during
the
period.
The
reopening
of
the
Chinese
economy
in
the
fourth
quarter
of
2022,
after
lengthy
COVID-19-related
shutdowns,
generally
bolstered
confidence,
particularly
as
renewed
Chinese
activity
did
not
appear
to
cause
inflation
to
accelerate.
On
the
negative
side,
a
small
number
of
high-profile,
regional
bank
failures
in
the
United
States
in
the
first
quarter
of
2023
raised
fears
of
possible
wider
banking
industry
contagion
and
future
credit
constraints.
However,
stocks
remained
in
positive
territory
despite
a
steep
decline
in
early
March.
Swift
action
from
federal
authorities
and
major
banks
eased
investors’
concerns,
enabling
markets
to
gain
additional
ground
in
the
closing
six
weeks
of
the
period.
Health
Care
Shares
Lead
Markets
Higher
Health
care
stocks
produced
the
strongest
returns
in
the
Index,
followed
by
consumer
discretionary
and
industrials.
Conversely,
the
energy
sector
generated
the
weakest
performance
in
the
Index
as
natural
gas
prices
collapsed
in
the
face
of
an
unexpectedly
mild
winter
and
the
success
of
European
countries
in
coping
with
the
absence
of
Russian
oil
and
gas.
The
financial
sector
experienced
a
mild
decline,
undermined
by
turmoil
in
the
banking
industry,
while
communication
services
produced
positive
returns
but
lagged
the
Index
average.
The
fund’s
use
of
derivatives
during
the
period
was
limited
to
futures
contracts
employed
solely
to
offset
the
impact
of
cash
positions,
which
the
fund
holds
pursuant
to
its
operations,
but
the
Index
does
not.
Such
holdings
helped
the
fund
more
closely
match
the
performance
of
the
Index.
Replicating
the
Performance
of
the
Index
Whether
the
Fed
can
curb
inflation
while
avoiding
a
significant
economic
slowdown
remains
an
open
question
that
is
likely
to
continue
to
drive
market
behavior
in
the
coming
months.
However,
in
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
As
of
the
end
of
the
period,
the
largest
sectors
in
the
Index
were
industrials,
financials
and
information
technology,
while
the
smallest
were
communication
services,
energy
and
consumer
staples.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
May
15,
2023
1
Total
return
includes
reinvestment
of
dividends
and
any
capital
gains
paid.
A
fund’s
net
asset
value
(NAV)
is
the
sum
of
all
its
assets
less
any
liabilities,
divided
by
the
number
of
shares
outstanding.
ETFs
are
bought
and
sold
at
market
prices,
not
NAV,
therefore
an
investor’s
return
at
market
price
may
differ
from
NAV.
Past
performance
is
no
guarantee
of
future
results.
Share
price,
yield
and
investment
return
fluctuate
such
that
upon
redemption,
fund
shares
may
be
worth
more
or
less
than
their
original
cost.
2
Source:
Morningstar,
Inc.
—
The
Morningstar
®
US
Mid
Cap
Index
SM
is
a
float-adjusted,
market
capitalization-weighted
index
that
is
designed
to
measure
the
performance
of
U.S.
mid-capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
falls
approximately
between
the
bottom
10%-30%
of
the
remaining
securities
comprising
the
investable
universe.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar
®
is
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
BNY
Mellon
ETF
Investment
Adviser,
LLC.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
ETF
shares
are
listed
on
an
exchange,
and
shares
are
generally
purchased
and
sold
in
the
secondary
market
at
market
price.
At
times,
the
market
price
may
be
at
a
premium
or
discount
to
the
ETF’s
per
share
NAV.
In
addition,
ETFs
are
subject
to
the
risk
that
an
active
trading
market
for
an
ETF’s
shares
may
not
develop
or
be
maintained.
Buying
or
selling
ETF
shares
on
an
exchange
may
require
payment
of
brokerage
commissions.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
The
fund
may,
but
is
not
required,
to
use
derivative
instruments.
A
small
investment
in
derivatives
could
have
a
potentially
large
impact
on
the
fund’s
performance.
The
use
of
derivatives
involves
risks
different
from,
or
possibly
greater
than,
the
risks
associated
with
investing
directly
in
the
underlying
assets.
The
prices
of
mid-cap
company
stocks
tend
to
be
more
volatile
than
the
prices
of
large
company
stocks,
mainly
because
these
companies
have
less
established
and
more
volatile
earnings
histories.
They
also
tend
to
be
less
liquid
than
larger
company
stocks.
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
from
November
1,
2022,
through
April
30,
2023,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation.
Market
and
Fund
Performance
Overview
For
the
six-month
period
ended
April
30,
2023,
the
BNY
Mellon
US
Small
Cap
Core
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
1.57%.
1
In
comparison,
the
Morningstar
®
US
Small
Cap
Index
SM
(the
“Index”),
the
fund’s
benchmark,
produced
a
return
of
1.52%
for
the
same
period.
2,3
Equities
gained
ground
during
the
reporting
period
as
inflationary
pressures
eased,
the
U.S.
Federal
Reserve
(the
“Fed”)
reduced
the
pace
of
interest-rate
hikes,
and
economic
growth
remained
positive.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
match
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
U.S.
small-
capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-
trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
bottom
3%-10%
of
the
remaining
securities
comprising
the
investable
universe.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Advance
Despite
Macroeconomic
Concerns
Market
sentiment
proved
volatile
but
positive
during
the
reporting
period,
with
hopes
for
continued
economic
growth
outweighing
concerns
regarding
persistently
high
levels
of
inflation
and
the
impact
of
Fed
rate
hikes
designed
to
curb
inflation.
In
November
2022,
as
the
period
began,
inflation
averaged
7.1%
on
an
annualized
basis,
down
from
the
9.1%
peak
set
in
June
2022
but
well
above
the
Fed
target
of
2%.
On
November
2nd,
the
Fed
raised
the
benchmark
federal
funds
rate
from
a
range
of
3.00%–3.25%
to
a
range
of
3.75–4.00%,
up
from
near
zero
eight
months
earlier.
During
the
reporting
period,
the
Fed
raised
rates
three
more
times,
totaling
an
additional
1.00%,
while
inflation
steadily
eased
to
5.0%
as
of
the
most
currently
available
figures.
Although
U.S.
economic
growth
and
corporate
profits
showed
signs
of
moderating
during
this
time,
indications
generally
remained
positive,
supported
by
robust
consumer
spending,
rising
wages
and
low
levels
of
unemployment.
These
encouraging
economic
trends
lessened
concerns
that
rising
rates
might
tip
the
economy
into
a
sharp
recession.
Accordingly,
while
equity
markets
frequently
dipped
or
spiked
in
response
to
the
economic
news
of
the
day,
stocks
trended
higher
on
balance,
led
by
growth-oriented
issues
in
the
communication
services
and
information
technology
sectors.
Other
factors
aside
from
inflation
and
interest
rates
also
played
a
role
in
market
behavior
during
the
period.
The
reopening
of
the
Chinese
economy
in
the
fourth
quarter
of
2022,
after
lengthy
COVID-19-related
shutdowns,
generally
bolstered
confidence,
particularly
as
renewed
Chinese
activity
did
not
appear
to
cause
inflation
to
accelerate.
On
the
negative
side,
a
small
number
of
high-profile,
regional
bank
failures
in
the
United
States
in
the
first
quarter
of
2023
raised
fears
of
possible
wider
banking
industry
contagion
and
future
credit
constraints.
However,
stocks
remained
in
positive
territory
despite
a
steep
decline
in
early
March.
Swift
action
from
federal
authorities
and
major
banks
eased
investors’
concerns,
enabling
markets
to
gain
additional
ground
in
the
closing
six
weeks
of
the
period.
Health
Care
Shares
Lead
Markets
Higher
Consumer
staples
and
consumer
discretionary
stocks
produced
the
strongest
returns
in
the
Index,
supported
by
strong
levels
of
consumer
spending,
followed
by
industrials.
Conversely,
the
energy
sector
generated
the
weakest
performance
in
the
Index
as
natural
gas
prices
collapsed
in
the
face
of
an
unexpectedly
mild
winter
and
the
success
of
European
countries
in
coping
with
the
absence
of
Russian
oil
and
gas.
The
financial
sector
experienced
a
mild
decline,
undermined
by
turmoil
in
the
banking
industry,
while
the
real
estate
sector
was
hampered
by
rising
interest
rates.
All
other
sectors
produced
positive
returns.
The
fund’s
use
of
derivatives
during
the
period
was
limited
to
futures
contracts
employed
solely
to
offset
the
impact
of
cash
positions,
which
the
fund
holds
pursuant
to
its
operations,
but
the
Index
does
not.
Such
holdings
helped
the
fund
more
closely
match
the
performance
of
the
Index.
Replicating
the
Performance
of
the
Index
Whether
the
Fed
can
curb
inflation
while
avoiding
a
significant
economic
slowdown
remains
an
open
question
that
is
likely
to
continue
to
drive
market
behavior
in
the
coming
months.
However,
in
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
As
of
the
end
of
the
period,
the
largest
sectors
in
the
Index
were
industrials,
financials
and
consumer
discretionary,
while
the
smallest
were
communication
services,
utilities
and
consumer
staples.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
May
15,
2023
1
Total
return
includes
reinvestment
of
dividends
and
any
capital
gains
paid.
A
fund’s
net
asset
value
(NAV)
is
the
sum
of
all
its
assets
less
any
liabilities,
divided
by
the
number
of
shares
outstanding.
ETFs
are
bought
and
sold
at
market
prices,
not
NAV,
therefore
an
investor’s
return
at
market
price
may
differ
from
NAV.
Past
performance
is
no
guarantee
of
future
results.
Share
price,
yield
and
investment
return
fluctuate
such
that
upon
redemption,
fund
shares
may
be
worth
more
or
less
than
their
original
cost.
2
Source:
Morningstar,
Inc.
—
The
Morningstar
®
US
Small
Cap
Index
SM
is
a
float-
adjusted,
market
capitalization-weighted
index
that
is
designed
to
measure
the
performance
of
U.S.
small-capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
bottom
3%-10%
of
the
remaining
securities
comprising
the
investable
universe.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar
®
is
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
BNY
Mellon
ETF
Investment
Adviser,
LLC.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
ETF
shares
are
listed
on
an
exchange,
and
shares
are
generally
purchased
and
sold
in
the
secondary
market
at
market
price.
At
times,
the
market
price
may
be
at
a
premium
or
discount
to
the
ETF’s
per
share
NAV.
In
addition,
ETFs
are
subject
to
the
risk
that
an
active
trading
market
for
an
ETF’s
shares
may
not
develop
or
be
maintained.
Buying
or
selling
ETF
shares
on
an
exchange
may
require
payment
of
brokerage
commissions.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
The
prices
of
small
company
stocks
tend
to
be
more
volatile
than
the
prices
of
large
company
stocks,
mainly
because
these
companies
have
less
established
and
more
volatile
earnings
histories.
They
also
tend
to
be
less
liquid
than
larger
company
stocks.
The
fund
may,
but
is
not
required,
to
use
derivative
instruments.
A
small
investment
in
derivatives
could
have
a
potentially
large
impact
on
the
fund’s
performance.
The
use
of
derivatives
involves
risks
different
from,
or
possibly
greater
than,
the
risks
associated
with
investing
directly
in
the
underlying
assets.
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
from
November
1,
2022,
through
April
30,
2023,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation.
Market
and
Fund
Performance
Overview
For
the
six-month
period
ended
April
30,
2023,
the
BNY
Mellon
International
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
22.33%.
1
This
compares
with
a
22.21%
total
return
for
the
fund’s
benchmark,
the
Morningstar
®
Developed
Markets
ex-US
Large
Cap
Index
SM
(the
“Index”),
during
the
same
period.
2,3
International
markets
gained
ground
during
the
reporting
period
as
central
bank
rate
hikes
began
to
slow
inflation
rates,
the
Chinese
economy
reopened
after
the
government
rescinded
its
“zero-COVID-19”
policy,
and
the
U.S.
dollar
weakened
relative
to
most
international
currencies.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
track
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index,
depositary
receipts
based
on
securities
comprising
the
Index,
exchange-traded
funds
(ETFs)
providing
exposure
to
such
securities,
and
derivatives
with
economic
characteristics
similar
to
such
securities
or
the
Index.
The
fund’s
derivatives
investments
may
include
futures,
currency
forwards,
total
return
swaps
and
structured
notes.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
developed-
markets
(excluding
the
United
States)
large-capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
equity
securities
(including
common
stock,
preferred
stock
and
shares
of
real
estate
investment
trusts
(REITs)),
issued
by
developed-
markets
companies
(excluding
the
United
States)
and
traded
on
a
major
foreign
exchange.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days,
trading
volume
and
turnover
during
the
preceding
six-month
period,
and
market
capitalization.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Rise
as
Inflation
Moderates
International
developed-markets
equities
climbed
during
the
prior
reporting
period
as
interest-rate
hikes
implemented
by
central
banks
began
to
gain
traction
in
the
fight
against
rampant
inflation.
In
October
2022,
just
prior
to
the
start
of
the
reporting
period,
inflation
in
the
20-member
eurozone
averaged
10.6%,
its
highest
level
since
the
eurozone
group
was
established
in
1999.
The
European
Central
Bank
raised
its
fixed
benchmark
rate
from
0.75%
to
1.50%
on
November
2,
2022,
followed
by
three
additional
increases
to
3.00%
as
of
March
22,
2023.
Inflation
appeared
to
respond,
declining
to
7.0%
as
of
April
2023.
While
economic
growth
rates
declined
as
well,
they
remained
positive.
Similar
trends
in
the
United
States
and
elsewhere
encouraged
hopes
that
inflation
might
be
tamed
without
prompting
a
major
global
recession.
International
markets
were
further
buoyed
by
the
Chinese
government’s
decision
in
December
2022
to
end
its
“zero-COVID-19”
strategy,
which
had
resulted
in
lockdowns
that
slowed
Chinese
economic
growth
and
disrupted
global
supply
chains,
with
negative
effects
felt
throughout
the
world’s
economies.
Developed-markets
equities,
particularly
those
denominated
in
U.S.
dollars,
also
benefited
from
a
weakening
U.S.
dollar
relative
to
most
international
currencies.
The
U.S.
dollar
weakened
throughout
the
period
as
the
U.S.
Federal
Reserve
(the
“Fed”)
appeared
to
near
the
end
of
its
current
rate-hike
cycle.
Most
international
equities
benefited
from
these
conditions,
with
all
industry
sectors
generating
positive
returns.
Many
of
the
market’s
strongest
returns
were
seen
among
growth-oriented
shares
that
had
underperformed
earlier
in
2022.
Conversely,
energy
stocks
were
hurt
by
declining
commodity
prices,
while
real
estate
equities
lagged
as
interest
rates
continued
to
rise.
Banking
sector
stocks
also
suffered
as
rising
interest
rates
led
to
the
failures
of
several
prominent,
U.S.-based
regional
banks,
raising
concerns
among
international
investors
and
bank
customers.
Europe
Recovers
Despite
Ongoing
Russia/Ukraine
Conflict
From
a
regional
perspective,
western
European
stocks
delivered
relatively
strong
performance,
reversing
the
region’s
underperformance
during
the
prior
reporting
period.
While
the
smaller
markets
of
Poland,
Denmark
and
Ireland
led
Europe’s
gains,
Italy,
Germany,
France
and
Spain
also
outperformed
other
international
developed
markets.
Due
to
idiosyncratic
market
developments,
Israel
and
Norway
were
the
only
countries
in
the
Index
to
produce
negative
returns,
while
Canada
lagged
as
well.
Among
Asian
nations,
Hong
Kong
produced
the
best
returns,
while
Australia,
Singapore
and
Japan
trailed.
From
a
sector
perspective,
consumer
discretionary,
utilities
and
information
technology
led
the
market’s
advance,
while
energy,
real
estate
and
communication
services
lagged.
The
fund’s
use
of
derivatives
during
the
period
was
limited
to
futures
contracts
employed
solely
to
offset
the
impact
of
cash
positions,
which
the
fund
holds
pursuant
to
its
operations,
but
the
Index
does
not.
Such
holdings
helped
the
fund
more
closely
match
the
performance
of
the
Index.
Replicating
the
Performance
of
the
Index
Whether
the
central
banks
can
curb
inflation
while
avoiding
a
significant
economic
slowdown
remains
an
open
question
that
is
likely
to
continue
to
drive
market
behavior
in
the
coming
months.
However,
in
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
May
15,
2023
1
Total
return
includes
reinvestment
of
dividends
and
any
capital
gains
paid.
A
fund’s
net
asset
value
(NAV)
is
the
sum
of
all
its
assets
less
any
liabilities,
divided
by
the
number
of
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
shares
outstanding.
ETFs
are
bought
and
sold
at
market
prices,
not
NAV,
therefore
an
investor’s
return
at
market
price
may
differ
from
NAV.
Past
performance
is
no
guarantee
of
future
results.
Share
price,
yield
and
investment
return
fluctuate
such
that
upon
redemption,
fund
shares
may
be
worth
more
or
less
than
their
original
cost.
2
Source:
Morningstar
Inc.
—
The
Morningstar
®
Developed
Markets
ex-US
Large
Cap
Index
SM
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
developed-markets
(excluding
the
United
States,)
large-capitalization
stocks.
A
country
is
considered
developed
if
it
meets
the
following
criteria:
(i)
its
annual
per
capita
gross
national
income
falls
in
the
World
Bank’s
high-income
category
for
the
most
recent
three
years;
(ii)
it
has
not
had
any
broad-based
discriminatory
controls
against
non-domiciled
investors
for
the
most
recent
three
years;
and
(iii)
its
stock
markets
exhibit
the
following
characteristics:
transparency,
market
regulation,
operational
efficiency,
and
the
absence
of
broad-based
investment
restrictions.
The
Index’s
initial
universe
of
eligible
securities
includes
equity
securities
(including
common
stock,
preferred
stock
and
shares
of
real
estate
investment
trusts
(REITs)),
issued
by
developed-markets
companies
(excluding
the
United
States)
and
traded
on
a
major
foreign
exchange.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days,
trading
volume
and
turnover
during
the
preceding
six-month
period,
and
market
capitalization.
Securities
not
previously
part
of
the
last
reconstitution
are
excluded
from
a
current
reconstitution
if
the
security
has
20
or
more
non-trading
days
during
the
last
six
months
or
their
trading
volume
and
turnover
ranks
in
the
bottom
25%
of
the
initial
universe
as
determined
by
the
index
provider
based
on
the
preceding
six
months
of
trade
data.
Securities
previously
part
of
the
last
reconstitution
are
provided
a
one-time
buffer
and
not
excluded
unless
the
security
has
30
or
more
non-trading
days
(20
or
more
non-trading
days
after
the
one-time